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  1. #1
    Join Date
    Sep 2004
    Location
    Cluj-Napoca, Romania
    Posts
    462

    Leaseweb charging VAT for hardware from another EU VAT registered company

    Hello,

    We've been using the Leaseweb collocation service for several years now.
    My company, Elvsoft, is VAT registered in EU (Romania), so we're VAT exempt and we're obviously not paying VAT to Leaseweb for collocation services.
    We own and ship all our hardware to their data centers.

    A few days ago we just happened to need an extra drive and we bought it from Leaseweb. To my surprise they issued an invoice where they charge VAT for the hard drive (21%) - rest of the services on the invoice are still VAT exempt.

    The amount itself is small and unimportant, it's just the principle and the fact that I do not want to pollute my accounting with invoices that I consider to be illegal.

    I am paying VAT since 2004, I am not a newbie on VAT taxation. I know that they are not entitled to charge VAT on computer parts from our company.

    I've contacted them and pointed this and their answer was:

    For all sale of equipment we are obligated to add VAT. This is Dutch VAT regulation.
    (I've asked for that "regulation" and waiting for an answer)

    However, maybe I am missing something. Maybe this law actually exists in the Netherlands (though, in my opinion, it would be against the EU VAT directives, which all EU countries must obey).

    Any other Netherlands and EU companies here? What is your opinion on the matter?

  2. #2
    Join Date
    Mar 2009
    Location
    NL
    Posts
    571
    The hardware stays in NL, so Leaseweb has to charge VAT. This applies to any country in the EU btw. If they would ship it to your country they would be able to send a VAT-free invoice.
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  3. #3
    Join Date
    Jun 2004
    Location
    Europe
    Posts
    3,523
    Quote Originally Posted by Rens View Post
    The hardware stays in NL, so Leaseweb has to charge VAT.
    I can confirm that this is correct, as hardware that was sourced in a EU country and stays in the same country must always be charged with VAT.
    Swiftway.net Your Business deserves our Quality - Experts on Hand since 2005. Europe & US locations, we operate our own network AS35017
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  4. #4
    Join Date
    Dec 2004
    Posts
    526
    A Dutch company is indeed not allowed to issue you a VAT-free invoice lacking proof of export.

    That doesn't prevent you from applying for a refund from the government though.
    A different procedure for reclaiming VAT on all kinds of business expenses made locally in other EU countries was introduced a while ago.
    Think it does qualify under that, but probably not worth the hassle for small amounts.

  5. #5
    Join Date
    Sep 2004
    Location
    Cluj-Napoca, Romania
    Posts
    462
    My accountant also confirmed this.

    Looks like you and Leaseweb are right: VAT must be charged on parts that do not leave the country.

    Thanks everyone for the input.

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